Can you nationalize a nation?

Credit default swaps are contracts a lender can buy from an insurer which guarantee the lender will be made whole if a borrower defaults.  CDS’s have become a popular tool used in the credit markets for assessing the risk inherent in a company’s balance sheet.  The higher in price a CDS goes, the more risk is assumed to exist that the specific company may default on their debt.  For instance. Citigroup has seen the increased premium for default risk on their paper increase of late to a high of 4.9%.   That they apparently just sold another huge chunk of their franchise to the government today attests to the veracity of those concerns.  B of A has recently seen their CDS premium rise nine trading days in a row to approximately 3.1%.  Hardly surprising given all the negative press we’ve been seeing about banks being nationalized and some bond holders possibly getting wiped out.  But what about the nation itself?  Credit default swaps on U.S. Treasuries have risen to 1.0%.  A small number perhaps, but how could anyone even question our credit worthiness?  Has the world started to doubt our ability to repay all this debt we’re creating?  Apparently, but how can anyone “nationalize” a nation.  Who can repossess the entire United States?  And where would that leave you?  To whom would you pay your rent?